MP buyout by BlackRock closer to approval

An administrative law judge (ALJ) has issued her report on the proposed buyout of Duluth-based Minnesota Power by the private-equity firm BlackRock. Technically, BlackRock is buying MP’s parent company, Allete, also based in Duluth.

Here are two recent headlines and both are true at the same time.

From the Duluth News-Tribune:

Regulators should deny sale of Allete, judge recommends

And from FOX 21:

ALLETE sale now just one step away.

The recommendation of the ALJ is strictly advisory. The ALJ’s job is to gather the information the state Public Utilities Commission (PUC) needs to make its decision. She doesn’t get a vote.

Think of the metaphor of a lawsuit. The ALJ is acting as judge, the PUC acts as jury.

Allete/Blackrock are the petitioners (plaintiffs) in this metaphor. The “defense” is being represented, for the most part, by the state Department of Commerce, who is supposed to protect the electric utility’s ratepayers.

This happened a few days ago, from Fox 9:

Minnesota Power’s sale to BlackRock gets backing of MN Department of Commerce.

Under the “settlement” between BlackRock and the Department, MP would freeze rates for a year and expand its Board of Directors to include more independent members.

Other interests still oppose the purchase.

The PUC will probably issue its verdict sometime this fall.